December 30, 2015
Cargill to sell crop insurance agency to Silveus
Cargill will sell its crop insurance agency, Cargill Crop Insurance LLC (CCI), to Silveus Insurance Group.
The transaction is expected to close in mid-January next year.
Cargill ventured into the crop insurance business in 2007.
"The mission of our grain and crop inputs businesses is to effectively and efficiently help farmers make the most of their investments in agriculture, and help them manage their risks." said Dave Baudler, president of Cargill AgHorizons U.S., which includes the company''s network of grain elevators and farm service centers in the country.
"We believe we can accomplish this mission through our core grain marketing and risk management programmes without being directly involved in the sale of Crop Insurance".
"Cargill chose Silveus because of their strong focus on crop insurance, exceptional capability to serve their customers, and industry leading tools it has developed to help farmers manage risk," said Jeff Klock, president of Cargill Crop Insurance. "Our customers will have an opportunity to benefit from these tools immediately upon the closure of this transaction."
According to Tyler Silveus, CEO of Silveus, the acquisition of Cargill Crop Insurance is the first significant purchase that the company has made in the crop insurance sector.
"Acquiring the Cargill business will help us accelerate growth and fuel additional innovation that provides additional value to our farmer clients," Silveus said. "We look forward to know and welcome each farm family, agent, and staff that has been associated with Cargill Crop Insurance."
Silveus is one of the largest crop insurance agencies in the US. The company is based in Warsaw, Indiana, US.